Cebu Pacific back to net loss on weaker peso, higher costs

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

May 14, 2026 | 12:00am

MANILA, Philippines —  Low-cost carrier Cebu Pacific swung to a net loss of P400 million in the first quarter, dragged by the peso’s growing weakness in foreign exchange and spiking financing costs.

Based on its financial report, Cebu Pacific’s parent Cebu Air Inc. took a net loss of P400 million in the first quarter, reversing its P466-million profit a year ago.

Cebu Pacific hiked its revenue by 10 percent to P33.32 billion, offsetting the six-percent increase in expenses to P30.3 billion, as jet fuel prices balloon due to security tensions in the Middle East.

However, what made Cebu Pacific crash into a net loss was the seven–fold jump in forex losses to P1.79 billion, as it pays as much as 70 percent of its costs in dollars. The airline started the year with forex trading of P58.79 to $1, but ended the first quarter with P60.75 to $1.

Further, Cebu Pacific’s financing costs jumped by five percent to P1.96 billion. The airline said it had to spend more for additional aircraft and engine deliveries.

The airline owned by the Gokongweis saw its load factor dip to 83.7 percent in the first quarter, from 84.9 percent a year ago, showing a demand slowdown in air traffic.

Airlines measure load factor as the number of seats sold against available capacity, so the higher it is the better, as they earn more from each flight.

Still, Cebu Pacific’s revenue cornerstones remain strong, with passenger income going up by six percent to P22.52 billion.

This is supported by an eight-percent growth in cargo revenues to P1.82 billion and a 19-percent spike in ancillary gains to P8.98 billion. Cebu Pacific also maintained its fleet leadership, ending the first quarter with 101 aircraft.

On top of this, the country’s biggest airline is pairing revenue gains with spending controls. Last week Cebu Air confirmed it is suspending dividend payouts this year to save cash in the midst of elevated fuel prices.

Cebu Pacific CEO Michael Szucs said the airline is taking a careful approach to protect margins, as jet fuel prices reach $200-per-barrel levels with no indication of a return to normalcy.

Szucs added Cebu Pacific closed the first quarter with more than P23 billion in cash, providing it with enough resources to hold on longer if higher fuel prices persist.